Brilliant tip Stefano! Problem is *nearly* solved. It turns out that using zotero and lyz citations get pushed using \citet command, which makes citations look like 'author (year)'. I couldn't change that using the dialogue box because lyx wouldn't recognise my .bib database. To have it recognise it I needed to: 1. insert a note at the end of the document and within it insert the Bibtex bibliography. 2. change the name of the .bib data base to not include any dots (my former filename was something like data.base.name.bib and that doesn't work).
Now my only problem is that I'd like to change the global settings to format all citations as (author year) rather than have to click on each citation to change it. Is the any way to do this? Thanks again, Roey